Waterloo Capital L.P. Sells 6,613 Shares of McDonald's Corporation $MCD

Key Points

• Waterloo Capital cut its McDonald’s position by 79.1% in the second quarter, selling 6,613 shares and retaining 1,743 shares valued at approximately $471,000. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly adjusted EPS of $3.38, ahead of estimates, while revenue of $7.10 billion slightly missed expectations. The company is emphasizing lower-priced meals and new menu offerings to address value-conscious consumers and competitive pressure from Burger King and other low-cost alternatives.
• The stock recently traded near $272.61, well below its 12-month high of $341.75. McDonald’s declared a quarterly dividend of $1.86 per share, implying a 2.7% annualized yield, while analysts maintain a “Moderate Buy” consensus with an average price target of $325.44.

Waterloo Capital L.P. reduced its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 79.1% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,743 shares of the fast-food giant's stock after selling 6,613 shares during the period. Waterloo Capital L.P.'s holdings in McDonald's were worth $471,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently modified their holdings of MCD. Your Advocates Ltd. LLP bought a new position in shares of McDonald's during the fourth quarter worth approximately $27,000. IFC & Insurance Marketing Inc. acquired a new stake in McDonald's during the fourth quarter worth approximately $29,000. Abound Financial LLC bought a new position in McDonald's during the 4th quarter worth $30,000. DecisionPoint Financial LLC lifted its position in shares of McDonald's by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after acquiring an additional 97 shares during the period. Finally, Entrust Financial LLC bought a new stake in shares of McDonald's during the 4th quarter valued at $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

Key Stories Impacting McDonald's

Here are the key news stories impacting McDonald's this week:

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

Insider Activity at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares of the company's stock, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 8,348 shares of company stock valued at $2,355,634. Company insiders own 0.26% of the company's stock.

McDonald's Trading Down 0.1%

McDonald's stock opened at $272.61 on Monday. The company has a market capitalization of $192.91 billion, a PE ratio of 22.15, a P/E/G ratio of 3.05 and a beta of 0.41. McDonald's Corporation has a 12 month low of $260.96 and a 12 month high of $341.75. The stock has a 50-day moving average price of $273.81 and a two-hundred day moving average price of $295.15.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. McDonald's's revenue was up 3.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.19 earnings per share. As a group, analysts predict that McDonald's Corporation will post 12.88 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald's's dividend payout ratio is 60.44%.

Wall Street Analyst Weigh In

Several equities analysts have commented on MCD shares. Royal Bank Of Canada decreased their target price on shares of McDonald's from $305.00 to $295.00 and set a "sector perform" rating on the stock in a report on Wednesday, August 5th. Wells Fargo & Company cut their price target on shares of McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a report on Thursday, July 16th. Guggenheim lowered their price objective on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating for the company in a research report on Wednesday, August 5th. Erste Group Bank downgraded McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Finally, KeyCorp dropped their price objective on McDonald's from $315.00 to $305.00 and set an "overweight" rating for the company in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $325.44.

McDonald's Company Profile

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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